Why People Trade: The Real Motives Behind Market Activity (Chapter 8)
Here is a question that sounds simple but almost nobody answers honestly: why do you trade?
Not “to make money.” That is what everyone says. Harris dedicates Chapter 8 to pulling apart all the different reasons people actually show up to the market. And the taxonomy he builds is genuinely useful. Because if you do not understand why you trade, you are probably doing it wrong. And if you cannot figure out why the person on the other side of your trade is trading, you have no idea whether you are the smart money or the dumb money.